EUR/USD poised for continued downside pressure
James Chen October 27, 2014 5:04 PM
<p>EUR/USD (daily chart shown below) has given back a significant portion of its gains that were made during the rebound that occurred in the first […]</p>
EUR/USD (daily chart shown below) has given back a significant portion of its gains that were made during the rebound that occurred in the first half of October.
After a sharp and sustained downtrend for the past five months, that rebound brought the currency pair up from a new two-year low of 1.2500 in early October to a high of 1.2886 in mid-October.
EUR/USD then pivoted back to the downside on touching its 50-day moving average. A subsequent re-test of the same moving average also resulted in a failure to sustain upside momentum and another swift turn to the downside.
Having failed thus far to extend its rebound, the currency pair continues to be under substantial downside pressure and the overall bearish trend continues to remain strongly intact.
Currently, the key downside price target remains at the noted 1.2500 low. The next major support targets below that reside around the 1.2450 level, last hit over two years ago, followed by the 1.2300 level.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.